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Uniform  Classification  of  Accounts 


FOR  CLASS  A 


Automotive  Transportation 


Companies 


PRESCRIBED   BY  THE 

RAILROAD  COMMISSION 

OP  THE 

STATE  OF  CALIFORNIA 

SOUTHERN  BRANCH 

UNIVERSITY  OF  O  L1FORNIA 
LIBRARY 

LC.  CALIF. 

EFFECTIVE  JANUARY  1,  1922 


IS49I 


CALIFORNIA   STATE  PRINTING  OFFICE 
SACRAMENTO.   1931 


ry 


Graduate  Sch4o   riness  Administration 

University  of  California 

Los  Angelea  24,  California 


RAILROAD  COMMISSION  OF  CALIFORNIA. 

HARLEY  W.  BBUNDIGE,  President Commissioner 

H.  D.  LOVELAND Commissioner 

IRVING  MARTIN   Commissioner 

CHESTER  H.  ROWELL Commissioner 

H.  STANLEY  BENEDICT.-  .-Commissioner 


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BUB.  Admim. 
Library 

Hi 
5606 


UNIFORM  CLASSIFICATION  OF  ACCOUNTS  FOR 
TRANSPORTATION  COMPANIES. 

To  all  Transportation  Companies  having  gross  operating  revenues  of 
more  than  $20,000  per  annum: 

The  following  uniform  system  of  accounts  for  transportation  com- 
panies, as  defined  in  Chapter  213  of  the  Statutes  of  1917,  is  established 
and  issued  by  the  Railroad  Commission  of  the  State  of  California  in 
accordance  with  the  provisions  of  section  4  of  said  act.  It  applies  to 
all  transportation  companies  having  gross  operating  revenues  of  more 
than  $20,000  per  annum.  The  Commission  by  Decision  No.  9837, 
dated  December  5,  1921,  approved  the  following  uniform  classification 
of  accounts  and  has  ordered  and  directed  all  transportation  companies 
having  gross  operating  revenues  of  more  than  $20,000  per  annum  to 
keep  their  accounts  and  records  on  and  after  January  1,  1922,  in 
accordance  with  the  classification  following. 

In  prescribing  this  system  of  accounts,  the  Commission  does  not  bind 
itself  to  approve  any  item  set  out  in  any  account,  either  as  to  amount 
or  character,  for  rate-fixing  purposes  or  when  authorizing  the  issue  of 
securities.  The  prescribed  system  of  accounts  is  designed  to  set  out 
the  facts  in  connection  with  the  income,  expenditures,  etc.,  and  there- 
from  the  Commission  will  determine,  when  engaged  in  fixing  rates  or 
authorizing  the  issue  of  securities,  just  what  consideration  shall  be 
given  to  the  various  items  in  the  several  accounts. 

Very  truly  yours, 

RAILROAD  COMMISSION  OF  THE 
STATE  OF  CALIFORNIA, 

By  H.  G.  MATHEWSON, 

Secretary. 
Dated:  December  6,  192.1. 

Flood  Building, 

San  Francisco,  California. 


GENERAL  INSTRUCTIONS  AND  DEFINITIONS. 

The  records  of  automotive  transportation  companies  shall  be  kept 
with  sufficient  particularity  to  show  fully  the  facts  pertaining  to  all 
entries  made  in  the  accounts  provided  herein.  Where  the  full  informa- 
tion is  not  recorded  in  the  general  books,  the  entries  therein  shall  be 
supported  by  other  records  in  which  the  full  details  shall  be  shown. 
Such  general  book  entries  shall  contain  sufficient  reference  to  the  detail 
records  to  permit  ready  identification  and  the  detail  records  shall  be 
filed  in  such  manner  as  to  be  readily  accessible  for  examination  by 
representatives  of  the  Railroad  Commission  of  the  State  of  California. 

The  term  "Automotive  Transportation  Companies"  as  used  in  this 
classification,  means  every  corporation,  company,  association,  joint  stock 
association,  firm,  copartnership  or  individual,  their  lessees,  trustees, 
receivers  or  trustees  appointed  by  any  court  whatsoever,  owning,  con- 
trolling, operating  or  managing  any  automobile,  jitney  bus,  auto  truck, 
stage  or  auto  stage  used  in  the  transportation  of  persons  or  property  as 
a  common  carrier  for  compensation,  subject  to  the  jurisdiction  of  the 
Railroad  Commission. 

Automotive  transportation  companies  divided  into  two  classes. 

For  the  purpose  of  the  system  of  accounts  prescribed  by  the  Railroad 
Commission,  transportation  companies  are  divided  into  two  classes,  as 
follows : 

CLASS  A :  Companies  having  annual  operating  revenues  exceeding 
$20,000. 

CLASS  B :  Companies  having  annual  operating  revenues  of  $20,000 
or  less. 

Classification   of   accounts. 

The  system  prescribed  herein  contains  the  following  general  classifica- 
tion of  accounts : 

(a)  Balance  Sheet  Accounts. 

(&)  Buildings,  Plant  and  Equipment  Accounts;  referred  to  also  as 
"Fixed  Capital  Accounts." 

(c)  Income  Accounts. 

(d)  Operating  Revenue  Accounts. 

(e)  Operating  Expense  Accounts. 

Subaccounts. 

The  following  instructions  shall  not  be  construed  to  prohibit  a  com- 
pany from  segregating  its  receipts  and  payments  in  further  refinement 
by  the  adoption  of  two  or  more  subaccounts  representing  one  primary 


AUTOMOTIVE   TRANSPORTATION    COMPANIES.  5 

account,  provided  that  any  one  group  of  subaccounts  shall  contain  only 
such  items  as  are  stated  herein  to  be  properly  chargeable  to  the  primary 
account  which  they  represent. 

Segregation  of  main  and  branch  lines. 

If  a  company  operates  both  main  and  branch  lines,  it  is  not  required 
that  the  books  be  maintained;  so  as  to  show  the  amount  invested  in  each 
line  or  to  segregate  the  operating  revenues  and  expenses  as  between 
the  main  and  branch  lines.  Such  a  segregation,  however,  is  extremely 
desirable  and  companies  are  recommended  to  keep  the  accounts  in  sucli 
a  manner  that  this  information  will  be  available. 

Balance  sheet. 

The  balance  sheet  is  a  statement  of  the  assets,  liabilities  and  surplus 
or  deficit  of  a  business  at  a  given  time.  It  contains  a  statement  of  the 
ledger  balances  after  the  accounts  covering  the  revenues,  expenses,  and 
other  income  items  have  been  closed  into  "surplus." 

Buildings,   plant  and   equipment   accounts. 

The  buildings,  plant  and  equipment  accounts,  sometimes  termed 
"Fixed  Capital  Accounts,"  are  the  accounts  in  which  is  shown  the 
amount  expended  on  the  different  elements  or  units  making  up  the  total 
investment  in  property  used  in  the  operation  of  the  company's  busi- 
ness as  carriers. 

Fifteen  primary  plant  and  equipment  accounts  are  provided  (Nos. 
200  to  214).  The  expenditure  on  plant  and  equipment  shall  be  dis- 
tributed over  these  accounts  in  accordance  with  the  text  of  such 
primary  accounts. 

Income  accounts. 

Income  accounts  are  those  designed  to  show  as  nearly  as  practicable 
for  each  fiscal  period  the  total  amount  of  money  that  a  carrier  becomes 
entitled  to  receive  for  service  rendered  by  it,  the  losses  sustained  by  it, 
the  amounts  accrued  for  use  of  moneys,  and  for  use  of  properties  of 
others,  and  the  appropriations  made  from  income  during  the  period. 
The  balance  in  this  account  represents  the  surplus  or  deficit  and  is 
shown  on  the  balance  sheet  under  that  caption. 

Operating  revenues. 

By  operating  revenues  are  meant  all  moneys  which  the  company 
receives,  or  becomes  entitled  to  receive,  for  services  rendered  as  carriers. 


2—15493 


6  UNIFORM    CLASSIFICATION    OF    .\rmr\TS. 

Operating  expenses. 

By  operating  expenses  arc  mean!  the  expenses  of  maintaining  plant, 
equipment  and  other  property  used  in  the  operation  of  the  transporta- 
tion business,  provision  for  depreciation,  the  expenses  of  conducting 
transportation  and  services  incident  thereto,  the  expenses  of  collecting 
revenues,  of  accounting  and  the  general  and  snpervisional  expenses  in 
connection  with  the  foregoing. 

Cost  of  buildings,  plant  and  equipment. 

The  terra  "cost"  herein  used,  means  the  actual  cost  in  money  of 
equipment  purchased,  of  materials  used  in  construction  and  installation, 
and  of  payments  for  labor  in  connection  therewith ;  if  the  consideration 
given  is  other  than  money,  the  actual  money  value  of  such  other  con- 
sideration at  the  time  of  the  purchase.  Cost  of  labor  includes  not  only 
wages,  salaries  and  fees  paid  employees,  but  also  personal  expenses  of 
such  employees  when  borne  by  the  company.  Cost  of  materials  and' 
supplies  consumed  in  construction  is  their  cost  at  the  places  where  they 
enter  into  construction,  including  cost  of  transportation  and  inspection. 

Property   in   service   prior  to  January   1,   1922. 

The  original  cost  or  ledger  value  of  buildings,  plant  and  equipment  in 
service  on  January  1,  1922,  shall  be  transferred  to  this  account  and 
carried  therein  pending  its  segregation  in  accordance  with  the  text  of 
the  plant  and  equipment  accounts  contained  herein.  When  such  seg- 
regation is  completed,  this  account  shall  be  cleared  by  transfer  to  the 
appropriate  plant  and  equipment  accounts. 

In  cases  where  it  is  not  possible  from  records  previously  maintained, 
to  ascertain  the  original  cost  of  the  different  units,  the  original  cost 
shall  be  estimated  and  the  amounts  so  ascertained  distributed  to  the 
appropriate  plant  and  equipment  accounts.  If  the  estimated  cost  is 
less  than  the  amount  at  which  such  property  is  carried  in  this  account, 
the  difference  shall  be  charged  to  Account  No.  200,  "Intangible 
Capital."  If  the  estimated  cost  is  in  excess  of  the  amount  at  which 
the  property  is  carried  in  this  account,  such  estimated  costs  shall  be 
approved  by  the  Railroad  Commission  before  the  entry  can  be  placed 
on  the  books. 

Property  retired. 

When  any  equipment  or  unit  of  property  is  sold  or  permanently 
retired  from  service,  whether  replaced  or  not,  the  ledger  value  (esti- 
mated if  not  known)  shall  be  credited  to  the  appropriate  account  or 
accounts  in  w^hich  it  is  carried  and  the  amount  concurrently  charged  to 
one  or  more  of  the  following  accounts  as  may  be  appropriate. 


AUTOMOTIVE   TRANSPORTATION    COMPANIES.  7 

Debit. 

To  Account  No.  161,  "Reserve  for  Accrued  Depreciation,"  the  amount 
(estimated  if  not  known)  of  the  accrued  depreciation  carried  therein 
with  respect  to  such  property. 

To  Account  No.  106,  ' '  Materials  and  Supplies, ' '  the  salvage  value  of 
material,  if  any,  recovered  from  such  property  and  taken  into  store  for 
future  use  or  sale. 

To  "Cash"  with  the  proceeds,  if  any,  from  the  sale  of  material 
recovered  from  such  property. 

To  Account  No.  315,  "Miscellaneous  Charges  to  Income,"  with  the 
balance  if  any. 

NOTE. — If  any  new  equipment  is  acquired,  or  new  plant  installed  to  take  the  place 
of  the  plant  and  equipment  retired,  the  cost  thereof  shall  be  charged  to  the  appropriate 
plant  and  equipment  account  or  accounts. 

Depreciation. 

Depreciation  is  the  decline  in  value  of  tangible  property  and  is  a  loss 
properly  chargeable  to  operating  expenses.  There  is  a  certain  wear 
and  tear  taking  place  in  the  property  which  can  not  be  covered  by 
repairs,  and  in  addition,  the  property  is  likely  to  become  obsolete  or 
inadequate  and  for  that  reason  be  discarded.  In  order  to  meet  the  loss 
that  will  be  sustained  when  property  is  discarded,  provision  should  be 
made  during  the  life  of  such  property  by  annual  charges  to  operating 
expenses.  Such  annual  charges  shall  be  based  on  a  rule  whereby  the 
sum  to  be  provided  shall  be  evenly  distributed  over  the  life  of  the 
property.  The  amount  of  such  annual  charges  shall  be  charged  to 
operating  expense  Account  No.  633,  "Depreciation  of  Plant  and  Equip- 
ment," and  credited  to  balance  sheet  Account  No.  161,  "Reserve  for 
Accrued  Depreciation. ' ' 


UNIFORM   CLASSIFICATION   OF   ACCOUNTS. 


LIST   OF    BALANCE   SHEET   ACCOUNTS. 

Asset  Side. 

Page 

100.  Plant  and  Equipment 9 

101.  Other  Property 9 

102.  Securities  of  Other  Companies 9 

103.  Cash    9 

104.  Notes  Receivable 9 

105.  Accounts  Receivable 9 

106.  Materials  and  Supplies 9 

107.  Special  Funds 10 

108.  Prepayments 10 

109.  Other  Debit  Accounts 10 

110.  Treasury  Securities 10 

111.  Discount  on  Capital  Stock 10 

112.  Discount  and  Expense  on  Funded  Debt 11 

Liability  Side. 

150.  Capital  Stock 11 

151.  Installments  on  Stock  Subscriptions 12 

152.  Premium  on  Capital  Stock 12 

153.  Assessment  on  Capital  Stock 12 

154.  Proprietor's  Account 12 

155.  Funded  Debt 13 

156.  Notes  Payable 13 

157.  Interest  Accrued 13 

158.  Accrued  Liabilities  Not  Due 13 

159.  Accounts  Payable 13 

160.  Other  Credit  Accounts 14 

161.  Reserve  for  Accrued  Depreciation 14 

162.  Unamortized  Premium  on  Funded  Debt 14 

163.  Surplus  or  Deficit—  14 


AUTOMOTIVE   TRANSPORTATION    COMPANIES. 

TEXT  OF  BALANCE  SHEET  ACCOUNTS  FOR  CLASS  A  COMPANIES. 

ASSET  SIDE. 

100.  PLANT  AND  EQUIPMENT: 

The  amount  to  be  included  under  this  head  in  the  Balance  Sheet  is 
the  total  of  the  balances  in  Accounts  Nos.  200  to  214,  representing  the 
book  value  at  the  date  of  such  balance  sheet  of  all  property,  tangible 
and  intangible,  used  by  the  company  in  its  transportation  operations  and 
operations  incident  thereto. 

101.  OTHER  PROPERTY: 

This  account  shall  include  the  cost  of  property,  such  as  lands,  build- 
ings, plant  and  eequipment,  etc.  not  used  in  transportation  operations. 

102.  SECURITIES  OP  OTHER  COMPANIES  : 

This  account  shall  include  the  cost  or  ledger  value  of  stocks,  bonds, 
mortgages  and  other  evidences  of  indebtedness,  owned  by  the  company. 

103.  CASH: 

This  account  shall  include  the  amount  of  cash  and  other  current 
funds  on  hand  or  on  deposit  in  banks  or  with  trust  companies.  This 
account  shall  also  include  cash  deposited  with  banks  or  others  for  pay- 
ment of  dividends,  interest,  or  for  other  specific  purposes. 

104.  NOTES  RECEIVABLE  : 

This  account  shall  include  the  cost  or  ledger  value  of  the  notes,  drafts, 
and  other  evidences  of  money  receivable. 

105.  ACCOUNTS  RECEIVABLE  : 

This  account  shall  include  the  amounts  owing  to  the  company  by 
corporations,  firms  or  individuals  for  miscellaneous  bills,  amounts 
advanced  to  employees  for  working  funds,  interest  due  and  collectible  on 
securities,  mortgages,  accounts  and  deposits;  and  other  items  of  amounts 
collectible. 

106.  MATERIALS  AND  SUPPLIES: 

This  account  shall  include  the  balances  representing  the  cost  of 
materials  and  supplies  on  hand,  arrived  at  as  follows : 

Charge  to  this  account  the  cost  of  materials  and  supplies  purchased, 
including  transportation  and  other  charges.  Charge  also  to  this  account 
at  salvage  value,  any  material  recovered  from  plant  retired  and  taken 
into  store  for  future  use  or  sale. 

Materials  and  supplies  taken  out  of  store  for  use  or  sale  shall  be 
credited  to  this  account  at  the  value  at  which  such  materials  and  supplies 
is  included  therein. 


10  UNIFORM  CLASSIFICATION  OF  ACCOUNTS. 

107.  SPECIAL  FUNDS: 

This  account  shall  include  the  cost  or  ledger  value  of  securities,  and 
other  assets  which  have  been  set  apart  and  held  in  depreciation,  sink- 
ing, insurance  and  other  funds. 

108.  PREPAYMENTS: 

Charge  this  account  with  the  amount  of  rents,  taxes,  licenses,  insur- 
ance and  other  like  expenses  paid  in  advance  of  the  period  to  which 
they  apply.  As  the  periods  covered  by  such  prepayments  expire,  credit 
this  account  and  charge  the  proper  operating  expense  or  other  accounts 
with  the  amount  applicable  to  the  period. 

109.  OTHER  DEBIT  ACCOUNTS: 

This  account  shall  include  the  cost  of  assets  not  provided  for  else- 
where, also  debit  items  the  final  disposition  of  which  are  uncertain. 

NOTE. — This  account  shall  be  kept  in  such  ;i  manner  that  a  list  can  be  made  of  the 
different  items  making  up  the  balance,  or  where  necessary  separate  subaccounts  shall 
be  provided. 

110.  TREASURY  SECURITIES: 

This  account  shall  include  the  par  value  of  securities  which  have  been 
nominally,  but  not  actually,  issued  by  the  accounting  company.  Sepa- 
rate accounts  shall  be  maintained  for  each  class  of  capital  stock  such  as 
common  and  preferred,  and  for  each  class  of  funded  debt  such  as  bonds, 
notes,  etc. 

NOTE. — Capital  stock  Is  considered  nominally  issued  when  certificates  are  signed 
and  sealed  and  placed  with  the  proper  officer  for  sale  and  delivery  or  pledged  or  other- 
wise held  within  the  control  of  the  company.  It  is  considered  actually  issued  when  it 
has  been  sold  to  a  bona  fide  purchaser  for  a  valuable  consideration  and  such  purchaser 
holds  it  free  from  all  control  of  the  accounting  company. 

Funded  debt  securities  are  considered  to  be  nominally  issued  when  certified  by 
trustees  and  placed  with  the  proper  officer  for  sale  and  delivery  or  pledged  or  other- 
wise held  within  the  control  of  the  company.  They  are  considered  to  be  actually  issued 
when,  they  have  been  sold  to  a  bona  fide  purchaser  for  a  valuable  consideration  and 
such  purchaser  holds  them  free  from  all  control  of  the  accounting  company. 

111.  DISCOUNT  ON  CAPITAL  STOCK: 

This  account  shall  include  the  discount  on  capital  stock  issued  or 
assumed  by  the  accounting  company.  By  the  term  "discount"  is 
meant  the  excess  of  the  par  value  of  stocks  actually  issued  or  assumed 
over  the  cash  value  of  the  consideration  received  for  such  stock.  Sepa- 
rate accounts  shall  be  maintained  for  the  discount  on  each  class  of 
stock,  such  as  common  ainl  preferred,  and  also  for  each  issue  of  the 
same  class  if  the  terms  are  in  any  way  different. 

Entries  in  these  accounts  shall  be  carried  therein  until  offset : 

(1)  By  premium  realized  by  subsequent  sales  of  the  same  class 

of  stock. 

(2)  By  assessments  levied  on  the  stockholders. 


AUTOMOTIVE    TRANSPORTATION    COMPANIES.  11 

(3)  By  appropriations  from  surplus  for  that  purpose. 

(4)  By  the  difference  between  the  par  value  of  the  same  class  of 

stock  reacquired  and  the  amount  paid  therefor,  provided 
the  amount  paid  is  less  than  the  par  value. 

NOTE. — The  cash  as  received  from  stockholders  in  respect  of  assessments  shall  be 
credited  to  Account  No.  153,  "Assessment  on  Capital  Stock"  ;  if  the  total  received  is 
less  than  the  balance  at  the  debit  of  discount  account,  the  amount  received  shall  be 
transferred  to  this  account ;  if  the  total  received  is  greater,  the  balance  at  debit  of 
this  account  shall  be  transferred  to  Account  No.  153,  "Assessment  on  Capital  Stock." 

112.  DISCOUNT  AND  EXPENSE  ON  FUNDED  DEBT  : 

This  account  shall  include  the  discount  on  bonds  and  other  evidence 
of  indebtedness  issued  or  assumed  by  the  accounting  company.  This 
account  shall  also  include  the  expenses  in  connection  with  the  issue 
and  initial  sale  of  evidences  of  debt  such  as  fees  for  drafting  mortgages 
and  trust  deeds;  fees  and  charges  for  issuing  or  recording  mortgages 
and  trust  deeds ;  cost  of  printing  bonds,  certificates  of  indebtedness 
and  other  commercial  paper  having  a  life  of  more  than  one  year ;  fees 
paid  trustees  acting  under  mortgages  and  trust  deeds  in  connection 
with  the  issue  of  bonds  or  other  form  of  debt;  (fee  paid  for  services  in 
connection  with  payment  of  interest  or  redemption  of  debt  should  be 
charged  to  income  account  No.  315,  "Miscellaneous  Charges  to 
Income.") 

By  the  term  "discount"  is  meant  the  excess  of  the  par  value  of  the 
securities  issued  or  assumed  and  the  accrued  interest  thereon,  over  the 
actual  cash  value  of  the  consideration  received  for  such  securities. 

Ledger  accounts  shall  be  provided  to  cover  discount  and  expenses 
for  each  class  of  debt,  such  as  bonds,  mortgages,  notes,  etc.,  and  also 
for  each  issue  of  the  same  class,  if  the  terms  are  in  any  way  different. 
The  total  of  the  balances  remaining  shall  be  included  in  the  balance 
sheet  under  this  account. 

Kach  month  or  year  there  shall  be  credited  to  this  account  and 
charged  to  income  Account  No.  316,  "Amortization  of  Debt  Discount 
and  Expenses,"  a  proportion  of  each  of  the  debit  balances  in  these 
accounts,  such  proportion  to  be  based  upon  the  ratio  which  such  account- 
ing period  bears  to  the  remaining  life  of  the  respective  security. 

If  the  accounting  company  desires,  it  may  write  off  the  debit  balance 
in  this  account  more  rapidly  than  that  stated  above. 

LIABILITY   SIDE. 

1  .">(».   ( '  \I-IT\I.  STOCK  : 

This  account  shall  include  the  total  par  value  of  outstanding  capital 
stocl<.  In  case  of  the  issue  of  two  or  more  classes  of  capital  stock  such 
a.s  common  and  preferred,  a  siibar-count  shall  be  provided  for  each  class 
and  alsu  for  each  issue  of  the  same  class,  if  the  terms  of  issue  are 
different. 


12  UNIFORM   CLASSIFICATION   OF   ACCOUNTS. 

In  stating  this  account  on  the  balance  sheet  statement  the  par  value 
of  stock  held  by  the  company  in  its  treasury  shall  be  deducted. 

NOTE. — If  the  transportation  company  Is  not  Incorporated,  but  is  operated  by  an 
individual,  firm,  copartnership  or  association,  the  amount  paid  into  the  business  by  the 
owners  shall  be  included  In  Account  No.  154,  "Proprietor's  Account." 

151.  INSTALLMENTS  ON  STOCK  SUBSCRIPTION  : 

This  account  shall  include  the  amount  of  installments  received  from 
subscribers  for  capital  stock.  When  all  installments  are  received  and 
certificates  of  stock  issued  therefor,  this  account  shall  be  cleared  and 
the  par  value  of  the  stock  so  issued  shall  be  credited  to  the  account 
appropriate  for  such  stock. 

152.  PREMIUM  ON  CAPITAL  STOCK: 
This  account  shall  include : 

(a)  The  excess  of  the  actual  money  value  (at  the  time  of  issue  of 
stock)  of  the  consideration  received,  over  the  par  value  of 
capital  stock  issued; 

(6)  The  amount  by  which  the  face  value  of  capital  stock  reacquired, 
exceeds  the  amount  paid  therefor. 

Entries  in  this  account  shall  be  carried  therein  until  offset — 

(1)  By  discount  suffered  on  subsequent  sales  of  same  class  of  stock. 

(2)  By  the  difference  between  the  par  value  of  the  same  class  of 

stock  reacquired  and  the  amount  paid  therefor,  provided  the 
amount  paid  is  in  excess  of  par  value. 

(3)  If  the  corporation  elects  and  is  permitted  to  distribute  to  its 

stockholders  all  or  any  portion  of  the  premium  on  its  capital 
stock,  the  amount  distributed  shall  be  charged  to  this  account. 

153.  ASSESSMENT  ON  CAPITAL  STOCK: 

This  account  shall  include  the  amount  received  in  respect  of  assess- 
ments levied  on  capital  stock. 

Entries  in  this  account  shall  be  carried  therein  until  offset,  as 
explained  in  the  note  under  Account  No.  Ill,  "Discount  on  Capital 
Stock." 

154.  PROPRIETOR'S  ACCOUNT: 

This  account  is  to  be  used  where  the  business  is  conducted  by  an 
individual,  firm,  copartnership  or  under  any  style  other  than  that  of  an 
incorporated  company,  and  shall  include  the  amount  paid  into  the  busi- 
ness by  the  party  or  parties  interested  in  the  concern. 


AUTOMOTIVE   TRANSPORTATION    COMPANIES.  13 

If  separate  accounts  are  maintained  for  each  of  the  parties  interested, 
the  total  of  the  balances  in  such  accounts  shall  be  shown  in  one  figure 
in  the  balance  sheet. 

155.  FUNDED  DEBT: 

This  account  shall  include  the  par  value  of  all  bonds,  notes,  mortgages, 
receiver's  certificates,  and  other  evidences  of  indebtedness  issued  or 
assumed  by  the  company  and  which  are  not  due  and  payable  until  after 
one  year  from  date  of  issue.  In  case  of  the  issuance  of  two  or  more 
classes  of  funded  debt  such  as  bonds  and  notes  payable,  etc.,  a  subaccount 
shall  be  provided  for  each  class. 

In  stating  this  account  on  the  balance  sheet  statement,  the  par  value 
of  funded  debt  issued  or  assumed  by  the  company  and  held  by  it  in  its 
treasury,  shall  be  deducted  from  the  balance  shown  on  this  account. 

156.  NOTES  PAYABLE: 

This  account  shall  include  the  par  value  of  all  notes,  drafts  and  other 
evidences  of  indebtedness  issued  or  assumed  by  the  company  which  are 
payable  on  demand  or  within  one  year  from  date  of  issue. 

157.  INTEREST  ACCRUED: 

Tli is  account  shall  include  the  amount  of  interest  accrued  on  all 
indebtedness  of  the  accounting  company,  except  where  such  interest  is 
added  to  the  face  of  the  principal  debt  as  is  usual  in  the  case  of  judg- 
ments. When  such  interest  is  paid  it  shall  be  charged  to  this  account 
and  credited  to  "cash"  or  other  appropriate  account.  Separate  sub- 
accounts  shall  be  maintained  for  the  interest  accrued  on  each  class  of 
indebtedness. 

The  interest  accrued  upon  any  judgment  against  the  accounting 
company  shall  not  be  credited  to  this  account,  but  to  the  account  to 
which  such  judgment  stands  credited. 

158.  ACCRUED  LIABILITIES  Nor  DUE: 

This  account  shall  include  all  liabilities  accrued  other  than  interest 
at  the  date  of  the  balance  sheet  but  not  due  until  after  that  date,  such  as 
taxes,  rents,  etc. 

The  accounting  company 's  records  should  be  kept  in  such  manner  as 
to  permit  of  a  ready  analysis  of  this  account  so  that  a  statement  can  be 
produced,  if  required,  showing  the  amount  accrued  in  respect  of  each 
of  the  classes  of  liability  included  therein. 

159.  ACCOUNTS  PAYABLE: 

This  account  shall  include  miscellaneous  bills  unpaid,  wages  unpaid, 
audited  vouchers  unpaid,  and  similar  items,  not  ineludable  in  the  fore- 
going liability  accounts. 

3—15493 


14  UNIFORM  CLASSIFICATION  OF  ACCOUNTS. 

160.  OTHER  CREDIT  ACCOUNTS: 

This  account  shall  include  all  credit  items  not  provided  for  elsewhere. 
including  reserves  other  than  depreciation  reserves. 

NOTE. — The  accounting  company's  records  shall  be  kept  in  such  manner  as  to  per- 
mit of  a  ready  analysis  of  this  account,  so  that  a  statement  showing  the  amount  of  the 
different  reserves  Included  therein,  can  be  produced  if  required. 

161.  RESERVE  FOR  ACCRUED  DEPRECIATION  : 

Credit  to  this  account  the  amounts  which  are  charged  monthly  or 
annually  to  operating  expense  account  No.  633,  "Depreciation  of  Plant 
and  Equipment,"  as  explained  under  "Depreciation,"  page  7. 

The  amounts  to  be  charged  to  this  account  are  explained  under 
"Property  Retired,"  page  6. 

162.  UNAMORTIZED  PREMIUM  ON  FUNDED  DEBT: 

This  account  shall  be  credited  with  the  premium  received  on  bonds 
and  other  evidences  of  indebtedness  issued  or  assumed  by  the  account- 
ing company,  and  debited  with  the  expenses  in  connection  with  the 
issue  and  initial  sale  of  such  evidences  of  debt,  such  as  fees  for  drafting 
mortgages  and  trust  deeds;  cost  of  printing  bonds,  certificates  of 
indebtedness  and  other  commercial  paper  having  a  life  of  more  than 
one  year ;  fees  paid  trustees  acting  under  mortgages  and  trust  deeds  in 
connection  with  the  issue  of  bonds  or  other  form  of  debt. 

If  bonds  are  issued  at  a  discount,  the  expenses  of  issue  shall  be 
charged  to  Account  No.  112,  "Discount  and  Expense  of  Funded  Debt." 

Each  year  there  shall  be  charged  to  this  account  and  credited  to 
Income  Account  No.  302  "Miscellaneous  Income,"  a  proportion  of  the 
balance  in  this  account,  such  proportion  to  be  based  upon  the  ratio  which 
one  year  bears  to  the  remaining  life  of  the  security. 

163.  SURPLUS  OR  DEFICIT  : 

Under  this  head  on  the  balance  sheet  statement  shall  be  shown  the 
balance  in  the  income  account.  In  case  the  income  account  shows  a 
debit  balance  it  shall  be  entered  on  the  balance  sheet  in  red  ink. 

NOTE. — If  the  transportation  company  is  not  incorporated  but  is  operated  by  nn 
individual,  firm,  copartnership  or  association,  the  balance  in  the  income  account  at  the 
close  of  each  fiscal  period  shall  be  transferred  to  the  account  or  accounts  of  the 
proprietors.  (See  also  instructions  under  Account  No.  154.) 


AUTOMOTIVE   TRANSPORTATION    COMPANIES.  15 

r 


LIST  OF  PRIMARY  ACCOUNTS  UNDER  WHICH  PLANT  AND  EQUIPMENT 
SHALL  BE  SEGREGATED. 

Page 

200.  Intangibles 16 

201.  Land 16 

202.  Buildings    17 

203.  Improvements  on  Leased  Property 17 

204.  Machinery,  Tools,  etc 18 

205.  Revenue  Passenger  Cars , 18 

206.  Revenue  Freight  Cars 18 

207.  Express,  Baggage  and  Mail  Cars 18 

208.  Service  Cars 19 

209.  Telephone  and  Telegraph  Lines 19 

210.  Floating  Equipment 19 

211.  Furniture  19 

212.  Miscellaneous  Tangible  Capital 19 

213.  Property  in  Service  Prior  to  January  1,  1922 19 

214.  Undistributed  Construction  Expenditure 20 


16  .     UNIFORM   CLASSIFICATION   OF   ACCOUNTS. 

TEXT  OF  PLANT  AND  EQUIPMENT  ACCOUNTS  FOR  CLASS  "A" 

COMPANIES. 

GENERAL  NOTE  AWLICABLK  TO  ALL  PLANT  AND  EQUIPMENT  ACCOUNTS: 

NOTE. — Articles  of  small  value  or  of  short  life,  or  articles  that  are  likely  to  be 
lost  or  stolen,  shall  not  be  charged  to  the  plant  and  equipment  accounts  but  shall  be 
charged  to  the  appropriate  operating  expense  accounts. 

200.  INTANGIBLES: 

Charge  to  this  account  the  expense  of  organizing  the  company,  the 
cost  of  franchises  and  patent  rights,  and  the  cost  of  other  intangibles 
used  or  useful  in  transportation  operations. 

201.  LAND: 

Charge  to  this  account  the  cost  of  land  used  in  transportation 
operations  and  operations  incident  thereto.  Such  cost  includes  cost  of 
registration  of  title,  cost  of  examination  of  title,  conveyancer's  and 
notary's  fees,  purchasing  agent's  fees,  taxes  accrued  to  date  of  transfer 
of  title  and  all  liens  upon  the  title  acquired;  cost  of  obtaining  consent 
and  payments  for  abutting  damages.  There  shall  also  be  charged  to 
this  account  special  assessments  levied  by  public  authorities  on  the 
basis  of  benefits  for  streets  and  other  public  improvements  such  as  new 
roads,  new  bridges,  new  sewers,  new  pavements,  new  curbing,  etc., 
but  not  any  taxes  levied  to  provide  for  maintenance  of  such  improve- 
ments. 

The  cost  of  buildings  and  other  improvements  should  not  be  included 
in  this  account.  If  at  the  time  of  acquisition  of  an  interest  in  lands, 
it  extends  to  buildings  or  other  improvements  thereon,  which  improve- 
ments are  devoted  to  transportation  operations  and  the  contract  does 
not  determine  the  price  of  such  improvements,  they  should  be  appraised 
at  their  fair  cash  value  for  use  in  such  operations,  and  such  appraised 
value  should  be  charged  to  Account  No.  202,  "Buildings,"  and 
excluded  from  this  account.  If  such  improvements  are  not  devoted 
to  transportation  operations  but  are  devoted  to  other  operations  or 
held  as  investments,  the  cost  (or  appraised  value,  if  the  cost  is  not 
determined  in  the  contract  of  acquisition)  should  be  charged  to 
Account  No.  101,  "Other  Property."  If  improvements  on  the  land 
at  the  date  of  acquisition  are  not  required  in  transportation  or  other 
operations  and  are  therefore  removed  or  wrecked,  the  cost  of  removing 
or  wrecking  them,  including  injuries  and  damages  in  connection  there- 
with should  be  charged,  and  salvage  credited,  to  this  account. 


AUTOMOTIVE  TRANSPORTATION  COMPANIES.  17 

202.  BUILDINGS: 

This  account  shall  include  the  cost  of  all  permanent  buildings  and 
structures,  to  house,  support,  or  safeguard  property  or  persons,  with 
all  appurtenant  fixtures,  improvements  to  land  and  other  constructions 
erected  on  land  owned  by  the  company.  The  cost  of  buildings  erected 
on  leased  land  shall  be  charged  to  Account  No.  203  "Improvements  on 
Leased  Property." 

Buildings  include  all  fixtures  attached  to  and  forming  a  permanent 
part  thereof,  such  as  water  pipes  and  fixtures,  steam  pipes  and  fixtures 
for  heating  and  ventilating;  gas  pipes  and  fixtures  for  lighting,  etc.; 
electric  wiring  and  fixtures  for  lighting,  signaling,  etc.;  elevators, 
cranes  and  hoists  and  the  motive  power  for  operating  them,  subways 
or  areaways  directly  connected  to  and  forming  a  part  of  the  building. 
This  account  includes  cost  of  excavations,  brick  or  concrete  chimneys 
and  such  piers  and  foundations  for  machinery  and  apparatus  as  are 
designed  to  be  as  permanent  as  the  buildings  and  independent  of  their 
use  in  connection  with  any  particular  units  of  machinery;  also  the 
cost  of  architect's  plans  and  of  superintendence  of  construction. 

Improvements  to  land  include  roadways,  fences,  sidewalks,  sewer 
systems,  water  systems,  yard  lighting  systems,  grading  and  landscape 
gardening,  and  any  other  permanent  structures  which  are  an  improve- 
ment to  the  property. 

NOTE  A. — This  account  should  not  include  any  charges  for  lighting,  heating,  or 
other  fixtures  temporarily  attached  for  purposes  of  display  or  demonstration. 

NOTB  B. — The  cost  of  specially  provided  foundations  not  expected  to  outlast  the 
machinery  or  apparatus  mounted  thereon,  should  be  charged  to  the  same  account  as 
is  the  cost  of  the  machinery  or  apparatus  for  which  they  are  provided. 

203.  IMPROVEMENTS  ON  LEASED  PROPERTY  : 

This  account  shall  include  the  cost  of  buildings  and  other  improve- 
ments erected  on  leased  property  whether  used  for  station,  office, 
garage,  freight  houses  or  other  purposes  necessary  to  transportation 
operation. 

The  cost  of  such  improvements  shall  be  amortized  over  the  period  of 
the  lease  under  which  the  property  is  held  by  charges  to  Account 
No.  633,  "Depreciation  of  Plant  and  Equipment,"  and  concurrently 
credited  to  Account  No.  161,  "Reserve  for  Accrued  Depreciation." 

When  a  lease  expiros,  the  cost  of  improvements  erected  thereon,  less 
salvage,  shall  be  credited  to  this  account  and  charged  to  Account 
No.  161,  "Reserve  for  Accrued  Depreciation." 


18  UNIFORM  CLASSIFICATION  OP  ACCOUNTS. 

204.  MACHINERY,  TOOLS,  ETC.: 

Tliis  account  shall  include  the  cost  installed  of  machinery,  fixed 
tools,  etc. ;  such  as  stationary  engines  and  boilers,  motors,  compressors, 
machine  tools,  lathes,  planes,  shafting,  belting  and  the  like  shop  equip- 
ment. It  shall  also  include  the  cost  of  specially  provided  foundations 
and  settings  for  machinery. 

NOTE. — Loose  tools  of  short  life  or  other  small  articles  that  are  likely  to  be  lost  or 
stolen  shall  not  be  charged  to  this  account  but  to  the  appropriate  operating  expense 
account. 

205.  REVENUE  PASSENGER  CARS: 

Charge  to  this  account  the  actual  money  cost  to  the  company  of 
passenger  cars  used  in  transportation  operations  and  operations  inci- 
dent thereto. 

If  such  passenger  cars  are  constructed  by  the  company  in  its  own 
workshops,  or  if  parts  are  purchased  and  the  same  assembled  by  the 
company,  the  records  shall  be  maintained  in  a  sufficiently  complete 
manner  to  show  the  cost  of  labor,  materials,  and  other  expenses 
incurred  in  such  work. 

If  passenger  cars  are  purchased  in  a  condition  ready  for  service,  the 
cost  shall  include  the  invoice  or  contract  price,  less  discount,  if  any, 
plus  frejght,  insurance  and  other  expenses  incurred  in  obtaining 
delivery  of  such  passenger  cars  upon  the  premises  of  the  company  and 
also  the  cost  of  any  additions  or  attachments  made  after  delivery. 

206.  REVENUE  FREIGHT  CARS  : 

Charge  to  this  account  the  actual  money  cost  to  the  company  of 
freight  cars  used  in  transportation  operations  and  operations  incident 
thereto. 

If  such  freight  cars  are  constructed  by  the  company  in  its  own  work 
shops,  or  if  parts  are  purchased  and  the  same  assembled  by  the  com- 
pany, the  records  shall  be  maintained  in  a  sufficiently  complete  man- 
ner to  show  the  cost  of  labor,  materials,  and  other  expenses  incurred  in 
such  work. 

If  freight  cars  are  purchased  in  a  condition  ready  for  use,  the  cost 
shall  include  the  invoice  or  contract  price,  less  discount,  if  any,  plus 
freight,  insurance  and  other  expenses  incurred  in  obtaining  delivery 
of  such  freight  cars  upon  the  premises  of  the  company,  and  also  the 
cost  of  any  additions  or  attachments  made  after  delivery. 

207.  EXPRESS,  BAGGAGE  AND  MAIL  CARS  : 

Charge  to  this  account  the  actual  money  cost  to  the  company  of 
express,  baggage  and  mail  cars,  used  in  transportation  operations  or 
operations  incident  thereto. 


AUTOMOTIVE   TRANSPORTATION    COMPANIES.  19 

If  such  cars  are  constructed  by  the  company  in  its  own  workshops, 
or  if  parts  are  purchased  and  the  same  assembled  by  the  company,  the 
records  shall  be  maintained  in  a  sufficiently  complete  manner  to  show 
the  cost  of  labor,  materials  and  other  expenses  incurred  in  such  work. 

If  the  cars  are  purchased  in  a  condition  ready  for  service,  the  cost 
shall  include  the  invoice  or  contract  price,  less  discount,  if  any,  plus 
freight,  insurance  and  other  expenses  incurred  in  obtaining  delivery  of 
such  cars  upon  the  premises  of  the  company,  and  also  the  cost  of  any 
additions  or  attachments  made  after  delivery. 

208.  SERVICE  CARS  : 

This  account  shall  include  the  cost  of  service  cars,  supply  cars,  and 
tow  and  repair  cars,  including  cranes  and  similar  equipment,  if  per- 
manently mounted  thereon. 

209.  TELEPHONE  AND  TELEGRAPH  LINES  : 

This  account  shall  include  the  amount  expended  on  the  construction 
of  telephone  and  telegraph  lines  to  be  used  wholly  in  transportation 
operations. 

210.  FLOATING  *]QUIPMENT: 

This  account  shall  include  the  cost  of  marine  or  tloating  equipment 
of  all  kinds,  including  appurtenances,  furniture  and  fixtures  necessary 
to  equip  them  for  service,  also  the  cost  of  inspection  and  transportation. 

211.  FURNITURE: 

This  account  shall  include  the  cost  of  movable  furniture  and  fittings 
for  general  office,  shops,  station,  waiting  rooms,  etc.,  such  as  desks, 
tables,  chairs,  carpets,  cases,  movable  partitions,  railings  and  shelves; 
typewriters,  addressing  machines,  adding  machines,  and  other  office 
devices;  stoves,  portable  gas  and  electric  fixtures  and  other  office  fit- 
tings (except  fixtures  considered  a  part  of  the  building). 

212.  MISCELLANEOUS  TANGIBLE  CAPITAL: 

This  account  shall  include  the  cost  of  all  property  used  in  trans- 
portation operations  or  operations  incident  thereto  not  elsewhere  pro- 
vided for. 

213.  PROPERTY  IN  SERVICE  PRIOR  TO  JANUARY  1,  1922: 

In  this  account  shall  be  carried  temporarily  the  ledger  value  of  prop- 
erty in  service  on  January  1,  1922,  pending  its  transfer  to  appropriate 
primary  account  or  accounts,  as  explained  under  the  general  instruction 
on  page  6. 


20  UNIFORM  CLASSIFICATION  OF  ACCOUNTS. 

214.  UNDISTRIBUTED  CONSTRUCTION  EXPENDITURE: 

This  account  is  provided  to  include  expenditures,  such  as  engineering, 
law  expenses,  injuries  and  damages,  interest  and  taxes  during  construc- 
tion and  similar  items,  incurred  in  connection  with  the  construction  or 
acquisition  of  physical  property,  but  which  has  not  been  included  as 
part  of  the  cost  of  any  specific  work. 

This  account  shall  be  kept  so  as  to  show  the  expenditure  under  each 
of  the  following  heads : 

(1)  Engineering. 

(2)  Law  Expenses. 

(3)  Injuries  and  Damages. 

(4)  Taxes  During  Construction. 

(5)  Interest  During  Construction. 

(6)  Miscellaneous. 

NOTK. — Expenditures  above  designated  should,  as  far  as  possible,  be  included  in  one 
or  more  of  the  foregoing  primary  plant  and  equipment  accounts. 


AUTOMOTIVE   TRANSPORTATION    COMPANIES.  21 


LIST  OF  INCOME  ACCOUNTS. 

Credits. 

Page 

300.  Transportation  Revenue 22 

301.  Revenue  from  Other  Operations 22 

302.  Miscellaneous  Income 22 

Debits. 

310.  Transportation  Expenses 22 

311.  Interest  on  Funded  Debt . 23 

312.  Other  Interest 23 

313.  Federal  Income  Taxes 23 

314.  Expenses,  Other  Operations 23 

315.  Miscellaneous  Charges  to  Income 23 

316.  Amortization  of  Debt  Discount  and  Expense 23 

317.  Appropriations  for  General  Reserves 24 

318.  Dividends  Declared  _.                                                                                   .__<__.  24 


22  UNIFORM    CLASSIFICATION    OF    ACCOUNTS. 

TEXT  OF  INCOME  ACCOUNTS  FOR  CLASS  "A"  COMPANIES. 

300.  TRANSPORTATION  REVENUE: 

Under  this  head  in  the  income  account  shall  he  included  the  total 
of  amounts  carried  in  primary  revenue  accounts  (Nos.  500  to  505  and 
520  to  523 ) ,  being  the  total  revenue  from  transportation  operations  for 
the  year  or  other  period  covered  by  the  income  account. 

301.  REVENUE  FROM  OTHER  OPERATIONS: 

If  the  company  conducts  other  than  transportation  operations,  the 
revenue  accruing  from  such  operations  shall  be  credited  to  this  account. 
This  account  includes  the  revenues  from  property,  the  investment  in 
which  is  carried  in  Account  No.  101,  ''Other  property." 

302.  MISCELLANEOUS  INCOME: 

Credit  to  this  account  all  revenues  accruing  to  the  company  other 
than  those  provided  for  in  Accounts  Nos.  300  and  301,  such,  for 
example,  as — 

(a)   Interest  and  dividends  received  on  securities  owned  by  the 

company. 
(6)   Rents  receivable  from  plants  or  equipment  leased  to  others 

and  not  used  in  part  by  the  company  in  its  transportation 

operations. 

(c)  Operating  and  other  income  received  subsequent  to  the  fiscal 

period  to  which  such  income  pertains. 

(d)  Credits  arising  from  the  cancellation  of  liabilities;  such  can- 

cellation being  due  to  inability  to  locate  the  creditor,  or 
other  good  cause. 

(e)  Profit  arising  from  the  sale  of  land  or  other  assets. 

The  above  examples  are  not  to  be  considered  as  comprising  all  the 
items  creditable  to  this  account,  but  are  given  merely  as  representative 
of  them. 

NOTE. — The  records  shall  be  so  maintained  that  a  statement  can  he  prepared  show- 
Ing  the  amount  received  from  each  source. 

310.  TRANSPORTATION  EXPENSES: 

Under  this  head  in  the  Income  Account  shall  be  included  the  total 
of  amounts  carried  in  the  primary  operating  expense  accounts  (Nos. 
600  to  614,  630  to  633,  650  to  652.  660  to  671),  being  the  total  expenses 
incurred  in  transportation  operations  for  the  year  or  other  period 
covered  by  the  income  account. 


AUTOMOTIVE  TRANSPORTATION  COMPANIES.  23 

311.  INTEREST  ON  FUNDED  DEBT. 

( 'harge  to  this  account  all  interest  accrued  on  outstanding  funded 
debt  issued  or  assumed  by  the  company,  the  liability  for  which  debt 
is  included  in  Account  No.  155,  "Funded  Debt."  This  account  does 
not  include  interest  on  securities  held  by  the  company  in  its  treasury 
or  pledged  as  collateral. 

NOTE. — The  amount  charged  to  this  account  shall  be  concurrently  credited  to 
Account  No.  157,  "Interest  accrued,"  to  which  account  shall  be  debited  payments  made 
on  account  of  interest. 

312.  OTHER  INTEREST: 

Charge  to  this  account  all  interest  paid  or  accrued  other  than  that 
included  in  Account  No.  311,  "Interest  on  Funded  Debt." 

313.  FEDERAL  INCOME  TAXES  : 

This  account  shall  include  the  amount  of  income  taxes  paid  or  payable 
to  the  Federal  Government. 

NOTE. — Income  taxes  levied  upon  bondholders  and  assumed  by  the  company  under 
the  terms  of  the  mortgage  shall  be  charged  to  Account  No.  315,  "Miscellaneous 
Charges  to  Income."  , 

314.  EXPENSES,  OTHER  OPERATIONS: 

If  the  company  conducts  other  than  transportation  operations,  the 
expenses  incurred  in  connection  with  such  operations  shall  be  charged 
to  this  account.  This  account  includes  the  expenses  of,  and  taxes  on 
property,  the  investment  in  which  is  carried  in  Account  No.  101, 
"Other  Property." 

315.  MISCELLANEOUS  CHARGES  TO  INCOME  : 

Charge  to  this  account  all  expenses  which  are  not  chargeable  to  opera- 
tion or  to  the  preceding  income  debit  accounts,  such,  for  example,  as — 

(a)  Rents  paid,  other  than  those  provided  for  elsewhere. 

(6)  Operating  expenses  relating  to  a  previous  fiscal  period. 

(r)  Losses  arising  from  the  sale  of  land  or  other  asset. 

(d)  Donations  to  churches  and  charitable  institutions. 

The  above  examples  are  not  to  be  considered  as  comprising  all  the 
items  chargeable  to  this  account,  but  are  given  merely  as  representative 
of  them. 

Nora — The  records  shall  be  so  maintained  that  a  statement  can  be  prepared  giving 
particulars  of  the  amounts  charged  to  this  account. 

316.  AMORTIZATION  OF  DEBT  DISCOUNT  AND  EXPENSE: 

This  account  shall  include  the  amounts  credited  to  Account  No.  112. 
"Discount  and  Expense  on  Funded  Debt." 


24  UNIFORM  CLASSIFICATION  OF  ACCOUNTS. 

317.  APPROPRIATIONS  FOR  GENERAL  RESERVES: 

If  the  company  elects,  or  circumstances  arise  which  make  it  advisable 
to  provide  a  reserve  for  any  purpose,  other  than  ' '  Reserve  for  Accrued 
Depreciation,"  the  amount  set  aside  shall  be  charged  to  this  account, 
and  concurrently  credited  to  Account  No.  160,  "Other  Credit 
Accounts. ' ' 

318.  DIVIDENDS  DECLARED  : 

Charge  to  this  account  the  amount  of  dividends  declared  on  the  capital 
stock  actually  outstanding. 


AUTOMOTIVE   TRANSPORTATION    COMPANIES.  25 


LIST  OF  OPERATING   REVENUE   ACCOUNTS. 

Transportation. 

Page 

500.  Passenger    Revenue 27 

501.  Freight  Revenue 27 

502.  Express  Revenue 28 

503.  Baggage  Revenue 28 

504.  Mail  Revenue 28 

505.  Other  Transportation  Revenue 28 

Miscellaneous  Operating  Revenues. 

520.  Station  and  Other  Privileges 28 

521.  Storage    29 

522.  Rent  from  Equipment  Hired 29 

523.  Rent  from  Buildings  and  Other  Property 29 


26  UNIFORM    CLASSIFICATION   OF    ACCOUNTS. 

OPERATING  REVENUE  ACCOUNTS. 

SECTION  1.  ACCOUNTS  FOR  OPERATING  REVENUES: 

The  accounts  provided  for  operating  revenues  are  designed  to  show 
amounts  of  money  which  a  carrier  becomes  entitled  to  receive  from 
transportation  and  from  operations  incident  thereto. 

Credits  to  the  revenue  accounts  shall,  as  nearly  as  practicable,  be 
upon  basis  of  accruals  of  revenue. 

If  a  company  issues  round  trip  tickets,  or  otherwise  enters  into  an 
arrangement  whereby  it  makes  itself  liable  to  render  service  in  the 
future,  it  may,  if  it  so  desires,  credit  the  amount  received  to  a  suspense 
account  and  carry  it  therein  until  the  service  has  been  rendered. 

No  amounts  shall  be  charged  against  the  accounts  of  this  classification 
representing  tariff  charges,  which  for  any  cause  are  uncollected,  the 
service  for  which  the  charge  is  made  having  been  properly  performed 
and  individuals  or  companies  being  liable  for  the  charges. 

Uncollectible  charges  against  individuals  and  companies  representing 
undisputed  tariff  charges  for  transportation  service  rendered  shall  be 
charged  to  Account  No.  671,  "Miscellaneous  General  Expenses." 

Uncollected  tariff  charges  on  unclaimed  and  refused  shipments  of 
freight,  such  refused  shipments  having  been  transported  in  accordance 
with  the  contract  of  shipment,  shall  be  charged  to  a  suspense  account, 
to  which  shall  be  credited,  to  the  extent  of  the  tariff  charges  included 
therein,  the  proceeds  derived  from  the  sale  of  such  unclaimed  and 
refused  freight.  When  the  excess  of  the  tariff  charges  over  the  amount 
realized  from  the  sale  of  freight  is  found  to  be  uncollectible,  it  shall  be 
cleared  to  Account  No.  671,  "Miscellaneous  General  Expenses." 

When  the  amount  realized  from  the  sale  of  such  unclaimed  and 
refused  freight  exceeds  the  amount  of  the  tariff  charges  for  the  trans- 
portation thereof,  the  excess  (if  lawfully  retained  by  the  carrier)  shall 
be  credited  to  Account  505,  ' '  Other  Transportation  Revenues. ' ' 

The  carrier's  tariff  charges  on  lost,  destroyed  or  damaged  shipments 
for  which  charges  neither  consignees  nor  consignors  are  liable,  shall  be 
charged  to  the  revenue  accounts  originally  credited. 

SECTION  2.   INTERPRETATION  OF  ITEM  LISTS: 

Lists  of  items  to  be  credited  and  of  items  to  be  charged  have  been 
given  as  a  part  of  the  text  of  this  classification  for  the  purpose  of  clearly 
indicating  the  application  of  the  accounting  rules.  They  are  not  to  be 
considered  as  comprising  all  the  items  creditable  or  chargeable  to  the 
several  accounts,  but  merely  as  representative  of  them. 

The  items  contained  in  the  lists  of  items  to  be  charged  to  the  respective 
accounts  are  chargeable  only  when  such  items  have  been,  through  over- 


AUTOMOTIVE   TRANSPORTATION    COMPANIES.  27 

sight,  included  in  the  credit  to  the  accounts,  or  they  are  items  of  revenue 
payable  to  others  for  service  to  be  rendered  in  accordance  with  the  tariff 
provisions  applicable  to  the  rates  upon  which  the  credits  to  the  several 
accounts  have  been  based. 

Text  Pertaining  to  Operating  Revenue  Accounts. 

500.  PASSENGER  REVENUE: 

Credit  to  this  account  all  revenue  from  the  transportation  of  pas- 
sengers. 

ITEMS  TO  BE  CREDITED. 

See  special  instructions,  Section  2,  page  26. 

(a)  Revenue  upon  the  basis  of  local  tariff  fares. 

(6)  The  carrier's  proportion  of  revenue  upon  the  basis  of  through 
tariff  fares. 

(c)  Revenue  from  transportation  of  passengers  on  special  cars  at 
la  ITS  based  on  special  rates. 

ITEMS  TO   BE  CHARGED. 

Amounts  paid  as  bridge  and  ferry  arbitraries. 

Redemptions  of  unused  and  partially  unused  passenger  tickets. 

Refunds  of  local  tariff  fares. 

The  carrier's  proportion  of  redemption  of  unused  and  partially 
unused  through  passenger  tickets. 

The  carrier's  proportion  of  refunds  of  through  tariff  fares. 

The  carrier's  proportion  of  overcharges  resulting  from  the  applica- 
tion, in  error,  of  fares  in  excess  of  tariffs. 

.")(>!.  FREIGHT  REVENUE  : 

('ndit  to  this  account  all  revenue  from  the  transportation  of  freight. 

ITEMS  TO  BE  CREDITED. 
See  special  instructions.  Section  2,  page  26. 
(a)   Revenue  upon  basis  of  local  tariff  rates. 

(6)  The  carrier's  proportion  of  revenue  upon  the  basis  of  through 
freight  tariff  rates. 

ITEMS  TO  BE  CHARGED. 

Amounts  paid  as  bridge  and  ferry  arbitraries  on  freight. 
Amounts  paid  for  completing  a  haul. 

Arbitraries  and  allowances  to  others  for  lighterage  and  wharfage. 
The  carrier's  proportion  of  overcharges  resulting  from  the  use  of 

rate*,  weights,  classifications  or  computations. 


28  UNIFORM    CLASSIFICATION   OF    ACCOUNTS. 

The  carrier's  proportion  of  refunds  on  account  of  errors  in  routing 
and  billing. 

The  carrier's  proportion  of  uncollected  revenue  on  freight  lost  or 
destroyed  in  transit. 

The  carrier's  proportion  of  uncollected  tariff  charges  on  damaged 
shipments  for  which  charges  neither  shipper  nor  consignee  is  liable. 

NOTE  A. — Other  carrier's  proportion  of  revenue  and  of  uncollectible  undercharges 
paid  by  the  carrier  on  account  of  its  errors  shall  be  charged  to  operating  expense, 
Account  No.  671,  "Miscellaneous  General  Expenses." 

NOTB  B. — Other  carrier's  proportion  of  revenue  paid  by  the  carrier  on  freight  lost, 
destroyed  or  damaged  in  transit,  for  which  neither  consignees  nor  consignors  are  liable 
shall  be  charged  to  operating  expense,  Account  No.  609,  "Damages,  Freight,  and 
Baggage." 

NOTB  C. — Revenue  from  the  transportation  of  caretakers  of  freight  shipments,  when 
not  included  as  a  part  of  the  freight  charges  on  the  waybill  covering  the  freight 
shipments  shall  be  credited  to  Account  No.  500,  "Passenger  Revenue." 

502.  EXPRESS  REVENUE  : 

This  account  shall  include  the  revenue  from  the  transportation  of 
express  matter,  and  from  use  of  facilities  on  equipment  and  at  stations, 
incident  to  such  transportation.  The  term  "Express"  is  intended  to 
cover  matter  handled  at  a  higher  rate  than  for  freight  on  account  of 
quicker  service  or  collection  and  delivery. 

503.  BAGGAGE  REVENUE: 

This  account  shall  include  the  revenue  from  the  transportation  of 
baggage  in  excess  of  free  authorized  allowances,  and  for  transportation 
of  packages,  articles,  dogs,  etc.,  as  baggage. 

504.  MAIL  REVENUE  : 

This  account  shall  include  the  revenue  from  the  transportation  of 
mail,  from  the  use  of  special  mail  facilities  and  from  bonuses  for 
special  mail  transportation. 

To  this  account  shall  be  charged  fines  and  penalties  imposed  by  the 
government,  when  not  collected  from  agents  or  employees. 

None. — The  revenue  from  the  transportation  of  mail  matter  and  empty  mail  poucJies 
at  freight  tariff  rates  shall  be  included  in  Account  No.  501,  "Freight  Revenue." 

505.  OTHER  TRANSPORTATION  REVENUE: 

This  account  shall  include  revenue  derived  from  transportation 
operations  not  includable  in  any  of  the  foregoing  revenue  accounts. 

520.  STATION  AND  OTHER  PRIVILEGES: 

This  account  shall .  include  revenue  from  weighing,  vending  and 
other  automatic  machines  located  at  stations,  from  advertising  at 
stations  and  on  cars,  from  the  privilege  of  operating  news  stands  at 
stations  and  selling  papers,  periodicals,  fruit,  etc.,  from  telephone 
companies  for  the  privilege  of  installing  and  operating  commercial 
telephones  at  stations  and  from  similar  sources. 


AUTOMOTIVE  TRANSPORTATION  COMPANIES.  29 

521.  STORAGE: 

This  account  shall  include  the  revenue  from  the  operation  of  parcel 
rooms,  and  from  the  storage  of  freight  and  baggage. 

522.  RENT  FROM  EQUIPMENT  HIRED: 

This  account  shall  include  amounts  received  as  rent  for  use  of 
revenue  cars,  motive  or  other  equipment  of  revenue  cars,  on  whatever 
basis  such  rent  may  be  determined. 

Amounts  paid  to  others  as  rent  for  use  of  their  cars  shall  not  be 
debited  to  this  account  but  to  operating  expense  account  No.  670, 
"Rent  of  Equipment." 

523.  RENT  OF  BUILDINGS  AND  OTHER  PROPERTY: 

This  account  shall  include  the  revenue  from  the  exclusive  use  of 
buildings  and  other  property  or  portions  thereof,  such  as  depot  and 
station  grounds  and  buildings,  when  the  property  is  operated  and 
maintained  in  connection  with  the  property  used  in  the  carrier's 
transportation  operations  and  the  expenses  of  maintaining  and  operat- 
ing the  rented  portion  can  not  be  separated  from  the  expenses  of  that 
portion  used  by  the  carrier. 

NOTE. — When  the  expenses  of  maintaining  and  those  of  operating  property  rented 
to  others  are  separable,  the  rents  received  shall  be  credited  and  the  expenses  of  main- 
tenance and  operation  shall  be  charged  to  appropriate  income  accounts. 


UNIFORM    CLASSIFICATION    OF    ACCOUNTS. 


LIST  OF  OPERATING  EXPENSE  ACCOUNTS. 

Conducting  Transportation. 

Page 

600.  Superintendence  of  Transportation 31 

601.  Passenger  Car  Operators 31 

602.  Freight  Car  Operators 31 

603.  Express,  Baggage  and  Mail  Car  Operators 31 

604.  Fuel  for  Power 31 

605.  Lubricants  and  Other  Supplies 31 

606.  Service  Car  Expenses 31 

607.  Station  Employees 32 

608.  Station  Expenses 32 

609.  Damages  Freight  and  Baggage 32 

610.  Garage  Labor  and  Expenses 32 

611.  Other  Transportation  Expenses 32 

612.  Operation  of  Telephone  and  Telegraph  Lines 32 

613.  Operation  of  Floating  Equipment 32 

614.  Leased  Cars  33 

Maintenance. 

630.  Buildings    — 33 

631.  Machinery,  Tools,  etc. 33 

632.  Equipment 33 

633.  Depreciation  of  Plant  and  Equipment 33 

Traffic. 

650.  Superintendence  and  Solicitation 34 

651.  Advertising  34 

652.  Miscellaneous   34 

General   and    Miscellaneous. 

660.  Salaries  and  Expenses  of  General  Officers 34 

661.  Salaries  and  Expenses  General  Office  Clerks 35 

662.  General  Office  Supplies  and  Expense 35 

663.  Stationery  and  Printing 35 

664.  Store  Expenses 35 

665.  Insurance 35 

666.  Injuries  and  Damages 35 

667.  Law  Expenses 36 

668.  Taxes  Assignable  to  Operation 36 

669.  Rent  of  Facilities 36 

670.  Rent  of  Equipment 37 

671.  Miscellaneous  General  Expenses 37 


AUTOMOTIVE  TRANSPORTATION  COMPANIES.  31 

CONDUCTING  TRANSPORTATION. 

600.  SUPERINTENDENCE  OF  TRANSPORTATION  : 

This  account  shall  include  the  salaries  and  expenses  of  superintend- 
ents, dispatchers,  car  starters,  inspectors  and  others  employed  in  super- 
intending transportation. 

NOTE. — In  cases  where  employees  are  engaged  partly  on  transportation  and  partly 
in  some  other  department,  their  salaries  and  expenses  shall  be  apportioned  on  some 
equitable  basis. 

601.  PASSENGER  CAR  OPERATORS: 

This  account  shall  include  the  wages  of  operators  engaged  in  passen- 
ger service,  including  wages  paid  for  the  time  during  which  they  are 
required  to  be  on  duty  and  to  hold  themselves  in  readiness  for  active 
service. 

602.  FREIGHT  CAR  OPERATORS: 

This  account  shall  include  the  wages  of  operators  engaged  in  freight 
service,  including  wTages  paid  for  time  during  which  they  are  required 
to  be  on  duty  and  to  hold  themselves  in  readiness  for  active  service. 

603.  EXPRESS,  BAGGAGE,  MAIL  CAR  OPERATORS: 

This  account  shall  include  the  wages  of  operators  engaged  in  express, 
baggage  or  mail  car  service,  including  wages  paid  for  time  during 
which  they  are  required  to  be  on  duty  and  to  hold  themselves  in  readi- 
ness for  active  service. 

604.  FUEL  FOR  POWER: 

This  account  shall  include  the  cost  of  all  gasoline  or  fuel  oil  con- 
sumed liy  passenger,  freight  and  other  revenue  earning  cars. 

605.  LUBRICANTS  AND  OTIIKR  Si  IM-UES: 

This  account  shall  include  the  cost  of  all  lubricating  oils,  greases, 
\v;iste  and  water  consumed  by  passenger,  freight  and  .other  revenue 
earning  cars. 

606.  SERVICE  CAR  KXI-ENSES: 

Tliis  account  shall  include  the  wages  of  drivers  and  other  employees 
engaged  in  service  cars,  the  cost  of  gasoline,  lubricating  oils  and  other 
supplies  consumed,  the  cost  of  labor  and  material,  including  tires  and 
tubes  used  in  repairing  service  cars  and  other  miscellaneous  expenses 
incurred  in  the  operation  of  service  cars. 


32  UNIFORM  CLASSIFICATION  OF  ACCOUNTS. 

607.  STATION  EMPLOYEES: 

This  account  shall  include  the  salaries  and  wages  of  agents,  clerks 
and  attendants  in  charge  of,  or  engaged  in,  the  operation  of  stations 
located  on  the  carrier's  routes;  also  payments  to  station  or  ticket  agents 
in  lieu  of  salaries.  It  shall  also  include  payments  for  labor  in  handling 
freight,  mail,  baggage  and  express  at  stations,  and  all  other  miscel- 
laneous work  at  stations. 

608.  STATION  EXPENSES: 

This  account  shall  include  the  cost  of  heating  and  lighting  stations, 
waiting  rooms,  freight  houses  and  other  station  buildings,  rent  of  sta- 
tion buildings,  and  all  other  station  expenses. 

609.  DAMAGES  FREIGHT  AND  BAGGAGE: 

This  account  shall  include  expenses  incurred  for  loss,  damages,  delays 
and  distributions  of  freight,  express  matter  and  baggage  entrusted  to 
a  carrier  for  transportation.  It  shall  also  include  freight  and  express 
charges  paid  other  carriers  on  lost,  destroyed,  damaged  or  delayed 
freight,  express  matter  and  baggage. 

610.  GARAGE  LABOR  AND  EXPENSE: 

This  account  shall  include  the  wages  of  foreman,  car  motor  and 
brake  inspectors;  watchmen,  car  placers,  car  shifters,  cleaners,  car 
oilers  and  other  garage  employees  not  engaged  in  making  repairs.  It 
shall  also  include  the  cost  of  fuel,  light,  water,  ice  and  other  garage 
expense  of  a  similar  nature. 

611.  OTHER  TRANSPORTATION  EXPENSES: 

This  account  shall  include  all  expenses  in  connection  with  conducting 
transportation  not  properly  chargeable  to  the  foregoing  operating 
expense  accounts. 

612.  OPERATION  OF  TELEPHONE  AND  TELEGRAPH  LINES: 

If  the  accounting  company  owns  or  rents  a  telephone  and  telegraph 
line,  which  it  uses  solely  in  connection  with  its  transportation  business, 
the  expenses  of  operation  and  the  cost  of  maintenance  shall  be  included 
in  this  account. 

613.  OPERATION  OF  FLOATING  EQUIPMENT  : 

If  the  accounting  company  owns  or  rents  floating  equipment  which 
it  uses  solely  in  connection  with  its  transportation  business,  the 
expenses  of  operation  and  the  cost  of  maintenance  shall  be  included 
in  this  account. 


AUTOMOTIVE  TRANSPORTATION  COMPANIES.  33 

614.  LEASED  CARS: 

This  account  shall  include  amount  paid  for  the  use  of  passenger  and 
freight  cars  leased  to  the  carrier  under  an  agreement  whereby  the 
owner  maintains  the  same,  furnishing  fuel,  lubricating  oils  and  other 
supplies.  The  wages  paid  the  drivers  shall  not  be  charged  to  this 
account,  but  to  Accounts  Nos.  601,  602,  603,  as  may  be  appropriate. 

MAINTENANCE. 

630.  MAINTENANCE  OF  BUILDINGS: 

This  account  shall  include  the  cost  of  labor  and  material  used  in 
repairing  garages,  shops,  general  offices,  stations,  waiting  rooms,  plat- 
forms, docks,  wharves,  and  all  other  buildings  and  structures  used  in 
transportation  operations  whether  owned  or  rented. 

NOTE. — The  cost  of  repairs  on  property  used  otherwise  than  in  transportation 
operations  shall  not  be  charged  to  this  account  but  to  Account  No.  315.  "Miscellaneous 
Charges  to  Income." 

631.  MAINTENANCE  OP  MACHINERY,  TOOLS,  ETC.: 

This  account  shall  include  the  cost  of  labor  and  material  used  in 
repairing  machinery  and  tools  (except  hand  tools)  in  shops  and 
garages,  such  as  engines,  boilers,  shafting  and  belting,  hoists,  jacks 
and  other  equipment  used  in  connection  therewith,  furnaces,  forges, 
planers,  lathes,  shapers,  drill  presses,  wheel  presses,  etc. 

632.  MAINTENANCE  OF  EQUIPMENT  : 

This  account  shall  include  the  cost  of  tires  and  tubes  and  other 
material  used  and  the  salaries  and  wages  of  men  engaged  in  the  repair 
of  passenger,  freight  and  other  revenue  cars  and  all  other  expenses 
incurred  in  keeping  such  cars  in  efficient  working  order.  It  shall  also 
include  the  cost  of  inspecting  and  testing  after  repairs  have  been  made 
so  as  to  determine  that  the  repairs  have  been  properly  made  and  the 
running  of  repaired  cars  light,  in  order  to  break  them  in  for  regular 
service. 

This  account  shall  be  divided  to  show— 

(1)  Tires  and  tubes. 

(2)  All  other  repairs. 

633.  DEPRECIATION  OF  PLANT  AND  EQUIPMENT: 

Charge  to  this  account  monthly  or  annually,  the  estimated  amount 
of  depreciation  accruing  in  buildings,  machinery,  tools,  etc.,  and  cars. 
(See  general  instructions,  page  7.) 


34  UNIFORM    CLASSIFICATION    OF    ACCOUNTS. 

Tin-  accounting  company  will  he  rc<|iiiiv<l  in  its  annual  report  to 
the  Railroad  Commission  to  make  a  statement  showing  the  hasis  us,-d 
for  computing  depreciation  on  the  ditVereiit  portions  of  its  property,  as 
follows : 

(a)  Buildings. 

(b)  Machinery,  Tools,  etc. 

(c)  Improvements  on  Leased  Land. 
(<]}  Passenger  and  Freight  Cars. 
(c)  Service  Cars  and  Equipment, 
(/)  Floating  Equipment. 

(g)  All  Other  Property. 

TRAFFIC. 

650.  SUPERINTENDENCE  AND  SOLICITATION: 

This  account  shall  include  the  salaries  and  expenses  of  employees 
engaged  on  traffic.  In  cases  where  employees  are  engaged  partly  on 
traffic  and  partly  in  some  other  department,  their  salaries  and  expenses 
shall  be  apportioned  on  some  equitahle  basis. 

651.  ADVERTISING: 

This  account  shall  include  salaries  and  expenses  of  advertising 
agents,  cost  of  printing,  publishing,  and  distributing  time  tables, 
folders,  notice  to  shippers  and  other  advertising  matter;  advertising 
in  newspapers  and  periodicals  for  the  purpose  of  securing  traffic,  signs 
on  cars  advertising  special  events;  portables  for  signs  for  attracting 
traffic,  bulletin  boards,  cards,  cases,  display  cards  and  photographs; 
postage  and  express  charges  on  advertising  matter;  cost  of  bill  posting; 
donations  made  for  traffic  purposes  and  for  entertaining  conventions 
and  similar  expenses. 

652.  MISCELLANEOUS  TRAFFIC  EXPENSES: 

This  account  shall  include  all  expenses  incurred  for  the  purpose  of 
securing  traffic,  not  properly  chargeable  to  the  foregoing  traffic  expense 
accounts. 

GENERAL  AND  MISCELLANEOUS. 

660.  SALARIES  AND  EXPENSES — GENERAL  OFFICERS: 

This  account  shall  include  the  salaries  and  expenses  of  the  chairman 
of  the  board,  president,  vice  president,  treasurer,  secretary,  auditor, 
general  manager,  assistant  general  manager,  chief  engineer,  general 
superintendent,  purchasing  agent,  and  all  other  officers  whose  jurisdic- 
tion extends  over  the  entire  system  or  all  departments. 


AUTOMOTIVE  TRANSPORTATION  COMPANIES.  35 

661.  SALARIKS  AND  EXPENSES — GENERAL  OFFICE  CLERKS: 

This  account  shall  include  the  salaries  and  expenses  of  traveling 
auditors,  bookkeepers,  cashiers,  paymasters,  stenographers,  clerks  era- 
ployed  in  counting  cash  tickets  and  transfers,  and  all  other  clerks 
employed  in  the  general  office. 

662.  GENERAL  OFFICE  SUPPLIES  AND  EXPENSES: 

This  account  shall  include  the  cost  of  office  supplies,  repairs  to  office 
furniture  and  mechanical  calculators,  typewriters,  and  other  office 
appliances,  wages  of  janitors,  porters  and  messengers,  and  miscellane- 
ous expenses  of  general  offices. 

663.  STATIONERY  AND  PRINTING: 

This  account  shall  include  the  cost  of  stationery,  postage  and  sta- 
tionery supplies,  except  as  provided  for  elsewhere;  also  the  cost  of 
printing  tickets,  transfers,  cash  fare  receipts,  baggage  checks,  hat 
cheeks,  waybills,  etc. 

NOTE  A.—  The  cost  of  printing  briefs  and  other  legal  papers  shall  be  charged  to 
Account  No.  667,  "Law  Expenses,"  or  Account  No.  666,  "Injuries  and  Damages."  The 
cost  of  printing  signs,  posters  and  other  advertising  matter  shall  be  charged  to  Account 
No.  651,  "Advertising." 

NOTE  B. — The  cost  of  repairing  mechanical  calculators,  typewriters  and  other  office 
appliances  shall  be  charged  to  Account  No.  662,  "General  Office  Supplies  and  Expenses," 
and  if  to  departmental  offices,  to  the  accounts  to  which  the  expenses  of  such  offices  are 
chargeable. 

664.  STORE  EXPENSES: 

This  account  shall  include  the  salaries  and  expenses  in  connection 
with  storerooms,  including  cost  of  handling  scrap  material  and  other 
similar  expenses. 

665.  INSURANCE: 

This  account  shall  include  premiums  paid  for  fire,  fidelity,  boiler, 
burglary  and  other  insurance;  also  amount  set  aside  as  an  insurance 
reserve  by  a  company  carrying  its  own  insurance  in  whole  or  in  part. 

666.  INJIKIIS  AND  DAMA<;I- : 

This  account  shall  include  expenditures  on  account  of  persons  killed 
or  injured  and  property  damaged ;  compensation  paid  employees 
injured  while  in  performance  of  their  duties;  salaries  and  expenses  of 
claim  agents,  investigators,  adjusters  and  others  engaged  in  the  investi- 
gation of  accidents  and  adjustments  of  claims;  salaries,  fees  and 
expenses  of  surgeons  and  doctors,  medical  and  surgical  supplies, 
nursing  and  hospital  attendance;  fees  and  expenses  of  coroners  and 
undertakers;  fees  of  witnesses  and  others. 


36  UNIFORM    CLASSIFICATION   OF   ACCOUNTS. 

To  this  account  shall  be  eli;u-«:ed  ;ils<>  l;i\v  expenses  incurred  in  con- 
nection with  the  defense  or  sett  lenient  of  damage  claims,  including 
the  compensation  of  general  counsel,  salaries,  fees  and  expenses  of 
attorneys,  fees  of  court  stenographers ;  cost  of  law  hooks,  appeal  bonds, 
printing  briefs  and  court  and  other  records;  court  costs,  expenses  con 
nected  with  taking  depositions  and  other  like  expenses  connected  with 
the  settlement  of  claims  for  injuries  and  damages. 

Premiums  for  insurance  against  liability  and  property  damage  and 
workmen's  compensation  shall  be  charged  to  this  account;  but  pre- 
miums paid  for  insurance  against  fire,  theft  and  damage  to  company's 
property  shall  be  charged  to  Account  No.  665,  "Insurance." 

NOTE  A. — The  compensation  of  general  counsel  and  other  attorneys  engaged  partly 
In  the  defense  or  settlement  of  damage  suits  and  partly  in  other  legal  work  shall  be 
apportioned  between  this  account  and  Account  No.  667,  "Law  Expenses." 

NOTE  B. — This  account  shall  not  include  the  expenses  incurred  in  connection  with 
the  settlement  of  claims  for  loss,  damage  or  delay  to  goods  entrusted  for  transportation. 

667.  LAW  EXPENSE: 

This  account  shall  include  all  law  expenses  except  those  incurred  in 
the  defense  and  settlement  of  damage  claims.  It  includes  salaries 
and  expenses  of  counsel  and  attorneys,  their  clerks  and  attendants  and 
expenses  of  their  offices;  fees  and  retainers  for  services  of  attorneys 
not  regular  employees,  cost  of  law  books;  cost  of  printing  briefs,  legal 
forms,  testimony,  reports,  etc. ;  court  costs  of  payments  of  special, 
notarial,  and  witness  fees  not  provided  for  elsewhere,  expenses  con- 
nected with  taking  depositions;  law  expense  of  receivers;  and  all 
law  and  court  expenses  not  provided  for  elsewhere. 

NOTE. — The  compensation  of  the  general  solicitor,  counsel  or  other  attorneys  engaged 
partly  in  the  defense  and  settlement  of  damage  suits  and  partly  in  other  legal  work, 
shall  be  apportioned  between  this  account  and  Account  No.  666,  "Injuries  and 
Damages." 

668.  TAXES  ASSIGNABLE  TO  OPERATION  : 

This  account  shall  include  all  taxes,  other  than  Federal  income  taxes, 
which  are  assignable  to  transportation  operations  and  which  are  prop- 
erly chargeable  to  the  period  covered  by  the  operating  account. 

The  account  shall  be  so  kept  that  the  amount  of  the  different  taxes 
included  therein,  such  as  state,  county,  city,  etc.,  can  be  readily  ascer- 
tained. 

NOTE. — Taxes  assignable  to  nonoperating  property  or  operations  other  than  trans- 
portation, shall  be  charged  to  Account  No.  314,  "Expenses — Other  Operations,"  and 
payments  made  in  respect  of  federal  income  taxes  shall  be  charged  to  Account  No. 
313,  "Federal  Income  Taxes." 

669.  RENT  OF  FACILITIES: 

This  account  shall  include  amounts  paid  as  rent  for  use  of  terminals, 
when  such  property  is  used  jointly  by  the  accounting  and  other 
carriers. 


AUTOMOTIVE  TRANSPORTATION  COMPANIES.  37 

670.  RENT  OF  EQUIPMENT  : 

This  account  shall  include  payments  to  others  as  rent  for  use  of  cars, 
motive  equipment  of  cars  and  other  equipment  on  whatever  basis  such 
rent  may  be  determined. 

NOTE. — The  amount  paid  for  cars  leased  under  an  agreement  whereby  the  owner 
pays  the  expenses,  both  of  maintenance  and  operation  shall  not  be  charged  to  this 
account  but  to  Account  No.  614.  "Leased  Cars." 

671.  MISCELLANEOUS  GENERAL  EXPENSES: 

This  account  shall  include  uncollectible  bills  and  all  other  expenses 
incurred  in  connection  with  the  transportation  business  not  provided 
for  elsewhere. 

; 


UNIFORM  CLASSIFICATION  OF  ACCOUNTS. 


REFERENCES. 


Lists  of  accounts  provided  for  in  this  classification  appear  on  the  following 
pages : 

Page 
BALANCE  SHEET  ACCOUNTS 8 

PLANT  AND  EQUIPMENT  ACCOUNTS 15 

INCOME  ACCOUNTS 21 

OPERATING  REVENUE  ACCOUNTS 2.r, 

OPERATING  EXPENSE  ACCOUNTS—  30 


74020 


15493     12-21     2000 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 

Los  Angeles 
This  book  is  DUE  on  the  last  date  stamped  below. 


Form  L9-32m-8,'58(5876s4)444 


Graduate  School  of  Business  AdmlnletwEf  ow 

TTniversi-H'-  r  ^  ~  -  -  •  - 

Angeles  .  ' 


*™005  009  780  7 


